AAPICO Hitech Public Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million Baht)

FY ended Dec. 31, 2012

FY ended Dec. 31, 2011

Rate of change (%)

Factors

Overall

Sales

16,120

10,356

55.7

-The strong year-on-year growth was mainly driven by the strong recovery and growth in the automotive industry due to the implementation of government policy on the tax rebate for the first-time car buyers.

EBITDA

2,019

403

401.0

Market share

(%)

FY ended Dec. 31, 2012

FY ended Dec. 31, 2011

FY ended Dec. 31, 2010

Chassis frames

32

20

36

Steel fuel tanks

20

20

34

Door checks

29

29

25

Plastic fuel tanks

7

7

7

*According to the Company.

Joint Ventures

-In December 2012, the Company announced the formation of a new joint venture company with Edscha Holding GmbH. The new company, Edscha-AAPICO Automotive Co., Ltd, will manufacture door checks and door hinges. It is capitalized at 40 million baht, approximately 1 million euros, 51 percent of which will be invested by Edscha and the remaining 49 percent by AAPICO. (From a press release on December 21, 2012)

Investment Activities

Capital Expenditures

(in million Baht)

FY ended Dec. 31, 2012

FY ended Dec. 31, 2011

FY ended Dec. 31, 2010

Overall

6,541

6,578

5,546

Investment in Thailand

-In the year 2013, the AAPICO Group plans to launch new models. Furthermore, the Company plans to expand business with Tier 1 suppliers, as well as Tier2. The Company has started the preparation to increase production capacity and manpower to support these new models. For this business expansion, the Company plans investments in new machinery, for example, the 1,000 ton blanking press at AAPICO Amata, and the new injection machines for 1,300 tons, 1,600 tons and 2,500 tons at AAPICO Plastics. In addition, with support from our subsidiary company, AAPICO Hitech Tooling, the Company plans to change from manual process to automation process in order to improve productivity and reduce the reliance on human manpower.